Problem 7-5A a, b1-b3, c (Part Level Submission) (Video) Brislin Company has four operating divisions. During the first quarter of 2020, the company reported aggregate income from operations of $194,000 and the following divisional results Division IV Sales Cost of goods sold Selling and administrative expenses Income (loss) from operations $251,000 $195,000 $502,000 $446,000 189,000 302,000 251,000 54,000 $ (30,000) (57,000) $140,000 $141,000 205,000 76,000 63,000 60,000 Analysis reveals the following percentages of variable costs in each division IV 73 % 62 Cost of goods sold 68 % 90 % 79 % Selling and administrative expenses 39 Discontinuance of any division would save 50% of the fixed costs and expenses for that division Top management is very concerned about the unprofitable divisions (I and II). Consensus is that one or both of the divisions 57 49 should be discontinued Lc) eare a colu nar con ensed inc rre s at erent or Bris in ompany, assuming Division s ein inated. Division s una Didad e fixed costs are allarate he cont nuing divtions. nter ne at ve amounts ernegat ve su e a y o s nge preceding the number e.g. -45 r parentheses e.g. (45).) BRISLIN COMPANY CVP Income Statement For the Quarter Ended March 31, 2020 DIvislons IV Total Sales Variable costs Cost af gaods sald Selling and admin strative Total variable casts Cantributien margin Fixed costs Cost of goods sold Selling and adminstrotive Total fixed costs Income (loss) from operations